{"id":24955,"date":"2025-07-24T12:50:00","date_gmt":"2025-07-24T05:50:00","guid":{"rendered":"https:\/\/metiaccounting.com\/?p=24955"},"modified":"2025-07-28T16:30:58","modified_gmt":"2025-07-28T09:30:58","slug":"how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers","status":"publish","type":"post","link":"https:\/\/metiaccounting.com\/en\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/","title":{"rendered":"How to Calculate Profit and Loss in Business Accounting \u2013 Understanding the True Numbers"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"24955\" class=\"elementor elementor-24955\">\n\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-48c1745 elementor-section-boxed elementor-section-height-default elementor-section-height-default sc_fly_static\" data-id=\"48c1745\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-extended\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0332279 sc_content_align_inherit sc_layouts_column_icons_position_left sc_fly_static\" data-id=\"0332279\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-30ca953 sc_fly_static elementor-widget elementor-widget-text-editor\" data-id=\"30ca953\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<blockquote><p class=\"translation-block\">\"A deep dive into accurate profit and loss calculation, including key depreciation principles, how to calculate accumulated depreciation, and techniques to manage accounting efficiently.\"<\/p><\/blockquote>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-15adb1c sc_fly_static elementor-widget elementor-widget-heading\" data-id=\"15adb1c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Business owners often wonder why the numbers in their profit and loss statements do not match the cash available in their bank accounts. One key reason lies in accounting principles, which require transactions to be recorded on an accrual basis rather than on a cash basis. This discrepancy is particularly evident in the case of depreciation, which significantly impacts profit and loss calculations.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-db5b5b0 sc_layouts_hide_on_wide sc_layouts_hide_on_desktop sc_layouts_hide_on_notebook sc_fly_static elementor-widget elementor-widget-image\" data-id=\"db5b5b0\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-db5b5b0{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-46e731b sc_layouts_hide_on_wide sc_layouts_hide_on_desktop sc_layouts_hide_on_notebook sc_fly_static elementor-widget elementor-widget-image\" data-id=\"46e731b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/api.whatsapp.com\/send\/?phone=%2B66636655171&#038;text&#038;type=phone_number&#038;app_absent=0&#038;wame_ctl=1\" target=\"_blank\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M.png\" class=\"attachment-full size-full wp-image-23024\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M.png 1024w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-300x300.png 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-150x150.png 150w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-768x768.png 768w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-12x12.png 12w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-370x370.png 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-120x120.png 120w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-840x840.png 840w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-410x410.png 410w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-600x600.png 600w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_M-460x460.png 460w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c00d4f6 sc_layouts_hide_on_tablet sc_layouts_hide_on_mobile sc_fly_static elementor-widget elementor-widget-image\" data-id=\"c00d4f6\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-c00d4f6{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-944aec5 sc_layouts_hide_on_tablet sc_layouts_hide_on_mobile sc_fly_static elementor-widget elementor-widget-image\" data-id=\"944aec5\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/api.whatsapp.com\/send\/?phone=%2B66636655171&#038;text&#038;type=phone_number&#038;app_absent=0&#038;wame_ctl=1\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1601\" height=\"901\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W.png\" class=\"attachment-full size-full wp-image-23025\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W.png 1601w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-300x169.png 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-1024x576.png 1024w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-768x432.png 768w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-1536x864.png 1536w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-18x10.png 18w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-370x208.png 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-1290x725.png 1290w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-840x473.png 840w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-410x231.png 410w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-600x338.png 600w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2022\/10\/business_finance_accounting_W-270x152.png 270w\" sizes=\"(max-width: 1601px) 100vw, 1601px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5010636d sc_height_small sc_fly_static elementor-widget elementor-widget-spacer\" data-id=\"5010636d\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-504d0887 sc_fly_static elementor-widget elementor-widget-image\" data-id=\"504d0887\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-504d0887{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c9d0a65 sc_fly_static elementor-widget elementor-widget-image\" data-id=\"c9d0a65\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/api.whatsapp.com\/send\/?phone=%2B66636655171&#038;text&#038;type=phone_number&#038;app_absent=0&#038;wame_ctl=1\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"535\" height=\"158\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2024\/12\/whatapp-en.png\" class=\"elementor-animation-grow attachment-full size-full wp-image-23382\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2024\/12\/whatapp-en.png 535w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2024\/12\/whatapp-en-300x89.png 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2024\/12\/whatapp-en-18x5.png 18w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2024\/12\/whatapp-en-370x109.png 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2024\/12\/whatapp-en-410x121.png 410w\" sizes=\"(max-width: 600px) 100vw, 535px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-483a8f5f sc_height_small sc_fly_static elementor-widget elementor-widget-spacer\" data-id=\"483a8f5f\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-66af88c elementor-section-boxed elementor-section-height-default elementor-section-height-default sc_fly_static\" data-id=\"66af88c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-extended\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2ec6398 sc_content_align_inherit sc_layouts_column_icons_position_left sc_fly_static\" data-id=\"2ec6398\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4436937 sc_fly_static elementor-widget elementor-widget-heading\" data-id=\"4436937\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><b>Understanding the Basics of the Profit and Loss Statement\n<\/b><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2cc1085 sc_fly_static elementor-widget elementor-widget-text-editor\" data-id=\"2cc1085\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\">Before diving into profit and loss calculations, it is crucial to understand the fundamentals of a profit and loss statement. This financial report is an essential tool for business owners, providing insights into business performance and facilitating informed decision-making.<br><br><\/p><p><span style=\"font-weight: 400;\">A profit and loss statement reflects a business\u2019s operational results over a specific period, showcasing its profitability. The key components include revenue and expenses. Understanding how to read and analyze this statement is a vital skill for business owners.<br \/><br \/><\/span><\/p><p class=\"translation-block\">The basic formula for profit and loss calculation is: <br><br><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit (Loss) = Total Revenue - Total Expenses<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total Revenue = Sales Revenue + Other Income<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\">Total Expenses = Cost of Goods Sold + Selling &amp; Administrative Expenses + Depreciation<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d1153b sc_layouts_hide_on_wide sc_layouts_hide_on_desktop sc_layouts_hide_on_notebook sc_fly_static elementor-widget elementor-widget-image\" data-id=\"2d1153b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-2d1153b{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8e7340f sc_layouts_hide_on_wide sc_layouts_hide_on_desktop sc_layouts_hide_on_notebook sc_fly_static elementor-widget elementor-widget-image\" data-id=\"8e7340f\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"2250\" height=\"2250\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M.jpg\" class=\"attachment-full size-full wp-image-24961\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M.jpg 2250w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-300x300.jpg 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-1024x1024.jpg 1024w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-150x150.jpg 150w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-768x768.jpg 768w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-1536x1536.jpg 1536w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-2048x2048.jpg 2048w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-12x12.jpg 12w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-370x370.jpg 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-120x120.jpg 120w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-840x840.jpg 840w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-410x410.jpg 410w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-600x600.jpg 600w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_M-460x460.jpg 460w\" sizes=\"(max-width: 2250px) 100vw, 2250px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ed22e69 sc_layouts_hide_on_tablet sc_layouts_hide_on_mobile sc_fly_static elementor-widget elementor-widget-image\" data-id=\"ed22e69\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-ed22e69{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-983ea3f sc_layouts_hide_on_tablet sc_layouts_hide_on_mobile sc_fly_static elementor-widget elementor-widget-image\" data-id=\"983ea3f\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1440\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-scaled.jpg\" class=\"attachment-full size-full wp-image-24962\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-scaled.jpg 2560w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-300x169.jpg 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-1024x576.jpg 1024w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-768x432.jpg 768w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-1536x864.jpg 1536w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-2048x1152.jpg 2048w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-18x10.jpg 18w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-370x208.jpg 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-1290x725.jpg 1290w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-840x473.jpg 840w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-410x231.jpg 410w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-600x338.jpg 600w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19_D-270x152.jpg 270w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c6410b6 sc_height_small sc_fly_static elementor-widget elementor-widget-spacer\" data-id=\"c6410b6\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7aa20e6 sc_fly_static elementor-widget elementor-widget-heading\" data-id=\"7aa20e6\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><b>Understanding Depreciation\n\n<\/b><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-efb049d sc_fly_static elementor-widget elementor-widget-text-editor\" data-id=\"efb049d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\">Depreciation is one of the most misunderstood components of financial statements. Although it does not involve an actual cash outflow, it still affects a company\u2019s profit and loss. Understanding this concept is key to better financial statement analysis.<br><br><\/p><p class=\"translation-block\">Depreciation is an accounting method that allocates the cost of fixed assets as expenses over their useful life. This practice explains why the profit in financial statements differs from the cash balance in the bank account.<br><br><\/p><p class=\"translation-block\">There are multiple methods for calculating depreciation, with the most commonly used formula being: <br><br><\/p><p><b>Depreciation = (Asset Cost - Residual Value) \/ Useful Life<br \/><br \/><\/b><\/p><p class=\"translation-block\">Example of Depreciation Calculation:\n<br><br><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Machine purchased for 1,000,000 THB<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Useful life of 5 years<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Residual value of 20,000 THB<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\">Annual depreciation = (1,000,000 - 20,000) \/ 5 = 196,000 THB<\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While 1,000,000 THB is paid upfront, the accounting records recognize an expense of 196,000 THB annually.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-a29d042 elementor-section-boxed elementor-section-height-default elementor-section-height-default sc_fly_static\" data-id=\"a29d042\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-extended\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3c79337 sc_content_align_inherit sc_layouts_column_icons_position_left sc_fly_static\" data-id=\"3c79337\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-40bc735 sc_layouts_hide_on_wide sc_layouts_hide_on_desktop sc_layouts_hide_on_notebook sc_fly_static elementor-widget elementor-widget-image\" data-id=\"40bc735\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-40bc735{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-41a0807 sc_layouts_hide_on_wide sc_layouts_hide_on_desktop sc_layouts_hide_on_notebook sc_fly_static elementor-widget elementor-widget-image\" data-id=\"41a0807\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"2250\" height=\"2250\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M.jpg\" class=\"attachment-full size-full wp-image-24966\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M.jpg 2250w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-300x300.jpg 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-1024x1024.jpg 1024w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-150x150.jpg 150w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-768x768.jpg 768w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-1536x1536.jpg 1536w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-2048x2048.jpg 2048w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-12x12.jpg 12w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-370x370.jpg 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-120x120.jpg 120w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-840x840.jpg 840w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-410x410.jpg 410w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-600x600.jpg 600w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_M-460x460.jpg 460w\" sizes=\"(max-width: 2250px) 100vw, 2250px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3dcec67 sc_layouts_hide_on_tablet sc_layouts_hide_on_mobile sc_fly_static elementor-widget elementor-widget-image\" data-id=\"3dcec67\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-3dcec67{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9117a5d sc_layouts_hide_on_tablet sc_layouts_hide_on_mobile sc_fly_static elementor-widget elementor-widget-image\" data-id=\"9117a5d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1440\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-scaled.jpg\" class=\"attachment-full size-full wp-image-24967\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-scaled.jpg 2560w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-300x169.jpg 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-1024x576.jpg 1024w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-768x432.jpg 768w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-1536x864.jpg 1536w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-2048x1152.jpg 2048w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-18x10.jpg 18w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-370x208.jpg 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-1290x725.jpg 1290w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-840x473.jpg 840w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-410x231.jpg 410w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-600x338.jpg 600w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32_D-270x152.jpg 270w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6767939 sc_height_small sc_fly_static elementor-widget elementor-widget-spacer\" data-id=\"6767939\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0881092 sc_fly_static elementor-widget elementor-widget-heading\" data-id=\"0881092\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><b>Understanding Asset Categories and Their Differences<\/b><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b654b86 sc_fly_static elementor-widget elementor-widget-text-editor\" data-id=\"b654b86\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\">Understanding the depreciation of different asset categories is essential, as each type has distinct usage patterns and lifespans. Incorrect depreciation calculations can affect profit and loss statements and tax planning. Business owners should grasp these fundamental principles.<br><br><\/p><p class=\"translation-block\">Different asset types require different depreciation methods. A critical question is whether land depreciates. The answer is no, as land has an indefinite lifespan and generally appreciates in value over time. In contrast, other asset types require depreciation, such as:<br><br><\/p><ol><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\"><b>Buildings and Structures:<\/b> 20-40 years lifespan, depreciation based on usage.<\/li><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\"><b>Machinery and Equipment:<\/b> 5-10 years lifespan, depreciation affected by physical wear and technological obsolescence.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8aa638c sc_fly_static elementor-widget elementor-widget-heading\" data-id=\"8aa638c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><b>Recording Accumulated Depreciation<\/b><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6269153 sc_fly_static elementor-widget elementor-widget-text-editor\" data-id=\"6269153\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\">Recording accumulated depreciation is another crucial accounting concept for business owners. It helps determine the true value of assets over time, which is vital for investment planning and financial decision-making. Accurate calculations provide a clearer financial overview.<br><br><\/p><p class=\"translation-block\">Accumulated depreciation represents the total depreciation recorded since an asset\u2019s acquisition, reflecting its book value at a given point.<br><br><\/p><p class=\"translation-block\">The formula is: Book Value = Asset Cost - Accumulated Depreciation\n<br><br><\/p><p><b>Example:<br \/><br \/><\/b><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vehicle purchased for 1,000,000 THB<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Annual depreciation of 150,000 THB<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After 3 years:<\/span><ul><li style=\"font-weight: 400;\" aria-level=\"2\" class=\"translation-block\">Accumulated depreciation = 450,000 THB<\/li><li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Book value = 550,000 THB<\/span><\/li><\/ul><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-ded041a elementor-section-boxed elementor-section-height-default elementor-section-height-default sc_fly_static\" data-id=\"ded041a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-extended\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-07db8a6 sc_content_align_inherit sc_layouts_column_icons_position_left sc_fly_static\" data-id=\"07db8a6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5def110 sc_layouts_hide_on_wide sc_layouts_hide_on_desktop sc_layouts_hide_on_notebook sc_fly_static elementor-widget elementor-widget-image\" data-id=\"5def110\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-5def110{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-52493e1 sc_layouts_hide_on_wide sc_layouts_hide_on_desktop sc_layouts_hide_on_notebook sc_fly_static elementor-widget elementor-widget-image\" data-id=\"52493e1\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"2250\" height=\"2250\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M.jpg\" class=\"attachment-full size-full wp-image-24976\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M.jpg 2250w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-300x300.jpg 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-1024x1024.jpg 1024w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-150x150.jpg 150w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-768x768.jpg 768w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-1536x1536.jpg 1536w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-2048x2048.jpg 2048w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-12x12.jpg 12w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-370x370.jpg 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-120x120.jpg 120w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-840x840.jpg 840w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-410x410.jpg 410w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-600x600.jpg 600w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_M-460x460.jpg 460w\" sizes=\"(max-width: 2250px) 100vw, 2250px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4856068 sc_layouts_hide_on_tablet sc_layouts_hide_on_mobile sc_fly_static elementor-widget elementor-widget-image\" data-id=\"4856068\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-4856068{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f23b73d sc_layouts_hide_on_tablet sc_layouts_hide_on_mobile sc_fly_static elementor-widget elementor-widget-image\" data-id=\"f23b73d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1440\" src=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-scaled.jpg\" class=\"attachment-full size-full wp-image-24975\" alt=\"\" srcset=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-scaled.jpg 2560w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-300x169.jpg 300w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-1024x576.jpg 1024w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-768x432.jpg 768w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-1536x864.jpg 1536w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-2048x1152.jpg 2048w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-18x10.jpg 18w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-370x208.jpg 370w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-1290x725.jpg 1290w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-840x473.jpg 840w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-410x231.jpg 410w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-600x338.jpg 600w, https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e27\u0e34\u0e18\u0e35\u0e04\u0e34\u0e14\u0e04\u0e48\u0e32\u0e40\u0e2a\u0e37\u0e48\u0e2d\u0e21\u0e23\u0e32\u0e04\u0e32\u0e2a\u0e30\u0e2a\u0e21_D-270x152.jpg 270w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1a303b4 sc_height_small sc_fly_static elementor-widget elementor-widget-spacer\" data-id=\"1a303b4\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ca070a4 sc_fly_static elementor-widget elementor-widget-heading\" data-id=\"ca070a4\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><b>Key Considerations When Calculating Profit and Loss\n<\/b><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b22ad6c sc_fly_static elementor-widget elementor-widget-text-editor\" data-id=\"b22ad6c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\">Calculating profit and loss involves more than simply subtracting expenses from revenue. Timing and expense classification play crucial roles. Overlooking these details can lead to miscalculations that impact business decisions.<br><br><\/p><ol><li style=\"list-style-type: none;\"><ol><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\"><b>Revenue Recognition:<\/b> Revenue is recorded when goods or services are delivered, not when payment is received. It must be recognized based on entitlements and reliably measurable value.<\/li><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\"><b>Expense Recognition:<\/b> Expenses are recorded when incurred, even if payment is pending. This includes non-cash items such as depreciation. All accrued expenses must be accounted for.<\/li><li style=\"font-weight: 400;\" aria-level=\"1\" class=\"translation-block\"><b>Special Considerations:<\/b> Certain transactions require careful attention, including gains\/losses from asset sales, write-offs of obsolete assets, bad debt provisions, and asset impairment.<\/li><\/ol><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9d57adc sc_fly_static elementor-widget elementor-widget-heading\" data-id=\"9d57adc\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><b>Conclusion \u2013 Effective Accounting Management Strategies\n<\/b><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-114c3e7 sc_fly_static elementor-widget elementor-widget-text-editor\" data-id=\"114c3e7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"translation-block\">Efficient accounting management requires a solid understanding of fundamental principles, particularly depreciation and profit and loss calculations. Mastering these concepts enables accurate financial planning, cash flow forecasting, and liquidity management. It also ensures precise bookkeeping and tax calculations, allowing business owners to make well-informed decisions, understand their actual costs, and plan investments strategically.<br><br><\/p><p><span style=\"font-weight: 400;\">By understanding these key principles, entrepreneurs can manage their businesses more effectively and leverage financial data to drive sustainable business growth.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5bd1ffd sc_fly_static elementor-widget elementor-widget-heading\" data-id=\"5bd1ffd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><b>Related Search Terms<\/b><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f55c4c1 sc_fly_static elementor-widget elementor-widget-text-editor\" data-id=\"f55c4c1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Depreciation<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Asset Depreciation Calculation<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accumulated Depreciation Calculation Method<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit and Loss Calculation<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does Land Depreciate?<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>A detailed guide for businesses on registering a company in Thailand. Learn how to navigate the process and ensure a seamless start to your operations.<\/p>","protected":false},"author":1,"featured_media":24957,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","footnotes":""},"categories":[70],"tags":[106],"class_list":["post-24955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","tag-106","pmpro-has-access"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Articles - METI accounting<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/metiaccounting.com\/en\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Articles - METI accounting\" \/>\n<meta property=\"og:description\" content=\"\u0e41\u0e0a\u0e23\u0e4c How to \u0e01\u0e32\u0e23\u0e08\u0e14\u0e1a\u0e23\u0e34\u0e29\u0e31\u0e17\u0e41\u0e1a\u0e1a\u0e25\u0e30\u0e40\u0e2d\u0e35\u0e22\u0e14 \u0e2a\u0e33\u0e2b\u0e23\u0e31\u0e1a\u0e19\u0e31\u0e01\u0e18\u0e38\u0e23\u0e01\u0e34\u0e08\u0e21\u0e37\u0e2d\u0e43\u0e2b\u0e21\u0e48 \u0e43\u0e04\u0e23\u0e01\u0e33\u0e25\u0e31\u0e07\u0e08\u0e30\u0e40\u0e1b\u0e34\u0e14\u0e1a\u0e23\u0e34\u0e29\u0e31\u0e17\u0e1a\u0e2d\u0e01\u0e40\u0e25\u0e22\u0e27\u0e48\u0e32\u0e15\u0e49\u0e2d\u0e07\u0e2d\u0e48\u0e32\u0e19\u0e1a\u0e17\u0e04\u0e27\u0e32\u0e21\u0e19\u0e35\u0e49\" \/>\n<meta property=\"og:url\" content=\"https:\/\/metiaccounting.com\/en\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/\" \/>\n<meta property=\"og:site_name\" content=\"METI Accounting &amp; Professional Services\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-24T05:50:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-28T09:30:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19-1024x1024.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"METI Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"METI Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/\"},\"author\":{\"name\":\"METI Team\",\"@id\":\"https:\/\/metiaccounting.com\/#\/schema\/person\/8ff86e58a21e614e0c9c95782c5a33d8\"},\"headline\":\"\u0e27\u0e34\u0e18\u0e35\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19\u0e43\u0e19\u0e1a\u0e31\u0e0d\u0e0a\u0e35\u0e18\u0e38\u0e23\u0e01\u0e34\u0e08 \u0e40\u0e02\u0e49\u0e32\u0e43\u0e08\u0e40\u0e1a\u0e37\u0e49\u0e2d\u0e07\u0e2b\u0e25\u0e31\u0e07\u0e15\u0e31\u0e27\u0e40\u0e25\u0e02\u0e17\u0e35\u0e48\u0e41\u0e17\u0e49\u0e08\u0e23\u0e34\u0e07\",\"datePublished\":\"2025-07-24T05:50:00+00:00\",\"dateModified\":\"2025-07-28T09:30:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/\"},\"wordCount\":6,\"publisher\":{\"@id\":\"https:\/\/metiaccounting.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19.jpg\",\"keywords\":[\"\u0e01\u0e32\u0e23\u0e40\u0e07\u0e34\u0e19\"],\"articleSection\":[\"\u0e1a\u0e17\u0e04\u0e27\u0e32\u0e21\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/\",\"url\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/\",\"name\":\"Articles - METI accounting\",\"isPartOf\":{\"@id\":\"https:\/\/metiaccounting.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19.jpg\",\"datePublished\":\"2025-07-24T05:50:00+00:00\",\"dateModified\":\"2025-07-28T09:30:58+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#primaryimage\",\"url\":\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19.jpg\",\"contentUrl\":\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19.jpg\",\"width\":2133,\"height\":2133},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/metiaccounting.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"\u0e27\u0e34\u0e18\u0e35\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19\u0e43\u0e19\u0e1a\u0e31\u0e0d\u0e0a\u0e35\u0e18\u0e38\u0e23\u0e01\u0e34\u0e08 \u0e40\u0e02\u0e49\u0e32\u0e43\u0e08\u0e40\u0e1a\u0e37\u0e49\u0e2d\u0e07\u0e2b\u0e25\u0e31\u0e07\u0e15\u0e31\u0e27\u0e40\u0e25\u0e02\u0e17\u0e35\u0e48\u0e41\u0e17\u0e49\u0e08\u0e23\u0e34\u0e07\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/metiaccounting.com\/#website\",\"url\":\"https:\/\/metiaccounting.com\/\",\"name\":\"METI Accounting &amp; Professional Services\",\"description\":\"METI \u0e1c\u0e39\u0e49\u0e0a\u0e48\u0e27\u0e22\u0e04\u0e23\u0e1a\u0e27\u0e07\u0e08\u0e23 \u0e2a\u0e33\u0e2b\u0e23\u0e31\u0e1a\u0e18\u0e38\u0e23\u0e01\u0e34\u0e08\u0e02\u0e2d\u0e07\u0e04\u0e38\u0e13\",\"publisher\":{\"@id\":\"https:\/\/metiaccounting.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/metiaccounting.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/metiaccounting.com\/#organization\",\"name\":\"METI Accounting &amp; Professional Services\",\"url\":\"https:\/\/metiaccounting.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/metiaccounting.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2023\/01\/cropped-LOGO-METI.png\",\"contentUrl\":\"https:\/\/metiaccounting.com\/wp-content\/uploads\/2023\/01\/cropped-LOGO-METI.png\",\"width\":400,\"height\":125,\"caption\":\"METI Accounting &amp; Professional Services\"},\"image\":{\"@id\":\"https:\/\/metiaccounting.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/metiaccounting.com\/#\/schema\/person\/8ff86e58a21e614e0c9c95782c5a33d8\",\"name\":\"METI Team\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/metiaccounting.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/97d7281a9942cf92796d4c43ffeeaa319543f1b1e22b2874740c29cb2df893b9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/97d7281a9942cf92796d4c43ffeeaa319543f1b1e22b2874740c29cb2df893b9?s=96&d=mm&r=g\",\"caption\":\"METI Team\"},\"sameAs\":[\"https:\/\/metiaccounting.com\"],\"url\":\"https:\/\/metiaccounting.com\/en\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Articles - METI accounting","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/metiaccounting.com\/en\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/","og_locale":"en_GB","og_type":"article","og_title":"Articles - METI accounting","og_description":"\u0e41\u0e0a\u0e23\u0e4c How to \u0e01\u0e32\u0e23\u0e08\u0e14\u0e1a\u0e23\u0e34\u0e29\u0e31\u0e17\u0e41\u0e1a\u0e1a\u0e25\u0e30\u0e40\u0e2d\u0e35\u0e22\u0e14 \u0e2a\u0e33\u0e2b\u0e23\u0e31\u0e1a\u0e19\u0e31\u0e01\u0e18\u0e38\u0e23\u0e01\u0e34\u0e08\u0e21\u0e37\u0e2d\u0e43\u0e2b\u0e21\u0e48 \u0e43\u0e04\u0e23\u0e01\u0e33\u0e25\u0e31\u0e07\u0e08\u0e30\u0e40\u0e1b\u0e34\u0e14\u0e1a\u0e23\u0e34\u0e29\u0e31\u0e17\u0e1a\u0e2d\u0e01\u0e40\u0e25\u0e22\u0e27\u0e48\u0e32\u0e15\u0e49\u0e2d\u0e07\u0e2d\u0e48\u0e32\u0e19\u0e1a\u0e17\u0e04\u0e27\u0e32\u0e21\u0e19\u0e35\u0e49","og_url":"https:\/\/metiaccounting.com\/en\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/","og_site_name":"METI Accounting &amp; Professional Services","article_published_time":"2025-07-24T05:50:00+00:00","article_modified_time":"2025-07-28T09:30:58+00:00","og_image":[{"width":1024,"height":1024,"url":"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19-1024x1024.jpg","type":"image\/jpeg"}],"author":"METI Team","twitter_card":"summary_large_image","twitter_misc":{"Written by":"METI Team","Estimated reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#article","isPartOf":{"@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/"},"author":{"name":"METI Team","@id":"https:\/\/metiaccounting.com\/#\/schema\/person\/8ff86e58a21e614e0c9c95782c5a33d8"},"headline":"\u0e27\u0e34\u0e18\u0e35\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19\u0e43\u0e19\u0e1a\u0e31\u0e0d\u0e0a\u0e35\u0e18\u0e38\u0e23\u0e01\u0e34\u0e08 \u0e40\u0e02\u0e49\u0e32\u0e43\u0e08\u0e40\u0e1a\u0e37\u0e49\u0e2d\u0e07\u0e2b\u0e25\u0e31\u0e07\u0e15\u0e31\u0e27\u0e40\u0e25\u0e02\u0e17\u0e35\u0e48\u0e41\u0e17\u0e49\u0e08\u0e23\u0e34\u0e07","datePublished":"2025-07-24T05:50:00+00:00","dateModified":"2025-07-28T09:30:58+00:00","mainEntityOfPage":{"@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/"},"wordCount":6,"publisher":{"@id":"https:\/\/metiaccounting.com\/#organization"},"image":{"@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#primaryimage"},"thumbnailUrl":"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19.jpg","keywords":["\u0e01\u0e32\u0e23\u0e40\u0e07\u0e34\u0e19"],"articleSection":["\u0e1a\u0e17\u0e04\u0e27\u0e32\u0e21"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/","url":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/","name":"Articles - METI accounting","isPartOf":{"@id":"https:\/\/metiaccounting.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#primaryimage"},"image":{"@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#primaryimage"},"thumbnailUrl":"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19.jpg","datePublished":"2025-07-24T05:50:00+00:00","dateModified":"2025-07-28T09:30:58+00:00","breadcrumb":{"@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#primaryimage","url":"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19.jpg","contentUrl":"https:\/\/metiaccounting.com\/wp-content\/uploads\/2025\/07\/\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19.jpg","width":2133,"height":2133},{"@type":"BreadcrumbList","@id":"https:\/\/metiaccounting.com\/how-to-calculate-profit-and-loss-in-business-accounting-understanding-the-true-numbers\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/metiaccounting.com\/"},{"@type":"ListItem","position":2,"name":"\u0e27\u0e34\u0e18\u0e35\u0e04\u0e33\u0e19\u0e27\u0e13\u0e01\u0e33\u0e44\u0e23\u0e02\u0e32\u0e14\u0e17\u0e38\u0e19\u0e43\u0e19\u0e1a\u0e31\u0e0d\u0e0a\u0e35\u0e18\u0e38\u0e23\u0e01\u0e34\u0e08 \u0e40\u0e02\u0e49\u0e32\u0e43\u0e08\u0e40\u0e1a\u0e37\u0e49\u0e2d\u0e07\u0e2b\u0e25\u0e31\u0e07\u0e15\u0e31\u0e27\u0e40\u0e25\u0e02\u0e17\u0e35\u0e48\u0e41\u0e17\u0e49\u0e08\u0e23\u0e34\u0e07"}]},{"@type":"WebSite","@id":"https:\/\/metiaccounting.com\/#website","url":"https:\/\/metiaccounting.com\/","name":"METI Accounting &amp; Professional Services","description":"METI \u0e1c\u0e39\u0e49\u0e0a\u0e48\u0e27\u0e22\u0e04\u0e23\u0e1a\u0e27\u0e07\u0e08\u0e23 \u0e2a\u0e33\u0e2b\u0e23\u0e31\u0e1a\u0e18\u0e38\u0e23\u0e01\u0e34\u0e08\u0e02\u0e2d\u0e07\u0e04\u0e38\u0e13","publisher":{"@id":"https:\/\/metiaccounting.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/metiaccounting.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/metiaccounting.com\/#organization","name":"METI Accounting &amp; Professional Services","url":"https:\/\/metiaccounting.com\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/metiaccounting.com\/#\/schema\/logo\/image\/","url":"https:\/\/metiaccounting.com\/wp-content\/uploads\/2023\/01\/cropped-LOGO-METI.png","contentUrl":"https:\/\/metiaccounting.com\/wp-content\/uploads\/2023\/01\/cropped-LOGO-METI.png","width":400,"height":125,"caption":"METI Accounting &amp; Professional Services"},"image":{"@id":"https:\/\/metiaccounting.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/metiaccounting.com\/#\/schema\/person\/8ff86e58a21e614e0c9c95782c5a33d8","name":"METI Team","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/metiaccounting.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/97d7281a9942cf92796d4c43ffeeaa319543f1b1e22b2874740c29cb2df893b9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/97d7281a9942cf92796d4c43ffeeaa319543f1b1e22b2874740c29cb2df893b9?s=96&d=mm&r=g","caption":"METI Team"},"sameAs":["https:\/\/metiaccounting.com"],"url":"https:\/\/metiaccounting.com\/en\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/posts\/24955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/comments?post=24955"}],"version-history":[{"count":16,"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/posts\/24955\/revisions"}],"predecessor-version":[{"id":24979,"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/posts\/24955\/revisions\/24979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/media\/24957"}],"wp:attachment":[{"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/media?parent=24955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/categories?post=24955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/metiaccounting.com\/en\/wp-json\/wp\/v2\/tags?post=24955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}